logo
#

Latest news with #BYDCo

Life atop China's car market starting to look shaky
Life atop China's car market starting to look shaky

The Star

time2 days ago

  • Automotive
  • The Star

Life atop China's car market starting to look shaky

FILE PHOTO: The BYD logo is displayed at the Beijing International Automotive Exhibition, or Auto China 2024, in Beijing, China, April 25, 2024. REUTERS/Tingshu Wang/File Photo SHANGHAI: Life at the top is proving complex for China's leading automaker, and there are fresh challenges on the horizon. BYD Co's monthly sales have stagnated of late and with the summer months being a traditionally slower time for consumer purchases, that trajectory isn't expected to reverse any time soon. Discounting is also now being looked sternly upon by Beijing, with China last week pledging to rein in 'irrational competition' in the electric vehicle (EV) sector, reflecting the authorities' wish to tackle the deflationary price wars that are threatening economic and industrial growth. Some of BYD's international forays are also proving more challenging than expected, raising the question, is China's No 1 automaker on shaky ground? The Shenzhen-based behemoth currently looks like it will undershoot its annual sales target for 2025, in what would be a rare miss after a multi-year bull run. The number of electric and hybrid vehicles BYD needs to sell each month through December has hit 560,000 units, in excess of levels it could hope to achieve typically in a single month. The most vehicles BYD has ever sold in a month was just shy of 515,000, in December last year. Analysts are now doubting whether BYD can hit 5.5 million units in 2025. Consensus estimates continue to be downgraded. Deutsche Bank AG earlier this month said it now expects five million in wholesales, or deliveries to dealers, for this year, comprising four million domestic units and one million overseas, while Morgan Stanley last month lowered its projection to 5.3 million, pointing to a smaller number of new models. Bloomberg Intelligence's Joanne Chen said BYD would need to sacrifice some profit and maintain its hefty discounting in the second half if it wants to stay on track. 'Regulatory scrutiny will temper direct cuts to vehicle sticker prices but competition isn't going away and retail promotions are still needed to sustain sales momentum,' she said. 'New model rollouts and steady tech upgrades are also crucial.' Bing Yuan, a fund manager at Edmond de Rothschild Asset Management, said many market watchers now realistically expect sales of around five million. 'My sense is that is the consensus,' she said. Stripping out overseas and commercial sales, BYD's core car deliveries in China are shrinking. In June, they slipped 8% year-on-year as vehicles from brands like Zhejiang Geely Holding Group Co, Xpeng Inc and Xiaomi Corp won over buyers. HSBC Holdings Plc data showed that Geely was the largest gainer of market share in the first half, while BYD was among the biggest losers. — Bloomberg

Stock Movers: Renault, ASML, Richemont
Stock Movers: Renault, ASML, Richemont

Bloomberg

time16-07-2025

  • Automotive
  • Bloomberg

Stock Movers: Renault, ASML, Richemont

On this episode of Stock Movers: - Renault shares sank the most since 2020 after the French automaker slashed its profitability outlook and named company veteran Duncan Minto interim chief executive officer. Renault shares fell as much as 17%, after the French carmaker issued a profit warning on Tuesday evening, lowering operating margin guidance for this year to around 6.5%, from at least 7% previously. The revised guidance underscores the challenges Renault's next management team is facing, including muted demand in Europe, mounting trade tensions and the growing competitiveness of Chinese manufacturers led by BYD Co. - ASML Holding NV Chief Executive Officer Christophe Fouquet walked back the company's growth forecast for next year due to trade disputes and global tensions. 'We continue to see increasing uncertainty driven by macro-economic and geopolitical developments,' Fouquet said in a statement on ASML's quarterly results Wednesday. 'Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.' ASML's shares fell as much as 7.1% to €655.70 in Amsterdam on Wednesday, the biggest decline since April. They have fallen 33% in the last year. - Richemont posted better-than-expected sales as wealthy shoppers snapped up Cartier rings and bracelets, defying a wider downturn for luxury goods. Sales at the jewelry division, Richemont's largest, surged 11% at constant exchange rates in the quarter ending in June, the Swiss luxury group said Wednesday. Analysts had forecast a gain of 8.6%. Overall, sales climbed 6%, ahead of expectations. The company's shares rose as much as 2.4% in early Swiss trading, bringing the gain this year to about 12%.

India's EV ambitions face setback as China tightens grip on rare earth exports
India's EV ambitions face setback as China tightens grip on rare earth exports

Time of India

time17-06-2025

  • Automotive
  • Time of India

India's EV ambitions face setback as China tightens grip on rare earth exports

China 's curbs on exports of some rare earth materials and magnets - used in automobiles, cell phones and myriad other devices - have stirred anxiety in corporate boardrooms the world over, including in India where automakers warn that production of new vehicles could soon grind to a halt. While supplies have started to trickle in for some European and American companies, India, which has tense relations with its Asian neighbour, is still waiting. Come July, the world's third-largest car market fears severe disruptions - especially in its nascent electric vehicle sector - if magnet supplies don't resume. That is the focus of our analysis this week. And, India mourned the victims of last week's fatal airliner crash in Ahmedabad while executives from Boeing and Air India discussed the search for the cause of the disaster. Scroll down for the latest. China's magnet dominance threatens Indian EV output This was supposed to be the year that electric vehicles finally made their mark in India, the world's third-largest auto market. But China had other ideas. China has a stranglehold on global processing capacity for rare earths, which are crucial for magnets that power the motors in EVs, and it has been wielding that dominance in recent months in trade spats with the US and others. India, increasingly at odds with its giant neighbour over border disputes and competing with it for influence in the region, is particularly vulnerable. Industry executives worry, moreover, that other supply chain snags may loom on the horizon, given India's reliance on China for EV batteries as well. Tata Motors and Mahindra & Mahindra, two of India's biggest EV makers, depend almost entirely on batteries from China's BYD Co and Gotion. China's decision in April to restrict its exports of rare earth materials and magnets comes at a crucial time for India, with several EV launches lined up this year including the first from its top carmaker, Maruti Suzuki. Maruti has been forced to cut its near-term production targets for its e-Vitara EV due to rare earth supply constraints, while hoping to recover lost ground later in the year as availability improves - an approach analysts say other Indian automakers could adopt to avoid a complete output halt. Bajaj Auto, a major producer of electric scooters in India, has also warned of a serious cutback in EV production by July if Beijing does not approve rare earth import permits soon. While India has initiated talks with China on stabilising supplies, the industry fears progress could be slow, not only because Beijing is overwhelmed with similar requests from across the world, but also given the tense relationship between the two Asian giants. Five years ago, in a move aimed at Chinese corporate takeovers in India that New Delhi saw as opportunistic, the trade ministry placed restrictions on investments from nations that share a land border with India. Chinese automakers BYD Co and Great Wall Motor were both forced to drop billion-dollar investment plans for Indian car manufacturing. Since 2020, New Delhi has banned dozens of Chinese apps such as TikTok and WeChat over national security concerns, and is yet to resume direct flights between India and China that were halted during the pandemic. India plans long-term development of its own rare earths For now, India has no reasonable alternatives to rare earth magnets from China, which controls about 90 per cent of the world's production. But for the medium-to-long term, New Delhi plans to make good use of its own rare earth reserves - the world's fifth-largest at 6.9 million metric tons. It is urgently drawing up an incentive scheme for domestic rare earth magnet production, although it lacks reserves of some of the heavy rare earths needed to make magnets, as well as much of the technology to produce them. Auto companies warn that any domestic commercial production of magnets from rare earths or alternative materials would need extensive testing and is likely many years away. India also has asked state-run miner IREL to stop exports of rare earth materials, forcing it to walk back on a 13-year-old supply agreement with Japan as it prioritises national interests. Prime Minister Narendra Modi wants EVs to make up 30 per cent of India's total passenger car sales by 2030, versus about 2.5 per cent in 2024, both to meet his decarbonisation goals and to clean up the air over India's cities, which are some of the world's most polluted. Analysts say that, while it may take India a decade to build its own EV supply chain, it must start now if Modi is to achieve those targets.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store